Looking for Pot Stocks?

Remember: the cannabis industry isn't just made up of companies growing cannabis.

"In my opinion, Canopy Growth (CGC) is best in class in the pot space. One huge reason would be the $4 billion investment that alcohol giant Constellation Brands (STZ - Get Report) made in the company back in August," Guilfoyle wrote. "Constellation, whose brands include Corona and Modelo beers, increased its Canopy stake from 9% to 38% as part of the deal, and Canopy CEO Bruce Linton talked of developing cannabis-infused beverages."

"There are several other major players in this space that the retail investor needs to be cognizant of. Those names would be Aphria (APHQF) , Aurora Cannabis (ACBFF) , Cronos Group (CRON) , GW Pharma (GWPH - Get Report) , and the now infamous Tilray (TLRY) . I say 'infamous' because TLRY has been more known since August for extreme volatility that put noted short-seller Andrew Left in the spotlight than for anything else," he continued.

Here's Guilfoyle's recommendations:

Best in Class: Canopy Growth

Less Downside with a Short-Term Supportive Catalyst: Aurora Cannabis

Some Exposure Without Doing Much Homework: Buy a cannabis ETF. One that actually trades in respectable volumes would be the ETFMG Alternative Harvest ETF (MJ - Get Report)